Connect with us

DeFi News

DeFi Protocol Platypus Announces Readiness to Refund Users



Platypus Fud

Recently attacked Decentralized Finance (DeFi) protocol Platypus Finance has expressed readiness to refund users that were victims of exploiters on Feb. 16, which led to the loss of $9.1 million. 

In compensating the affected users, Platypus revealed via a Twitter post that it has created a portal where individuals can check the value of their loss as well as expected compensation for the claim.

Platypus USD stablecoin unfortunately lost its peg with the U.S. dollar following the flash loan attack it suffered on Feb. 16. 

As a consequence, the DeFi platform confirmed that it recorded a loss of $8.5 million from its main pool after the attack. Meanwhile, the protocol revealed that it has contacted the supposed hacker to negotiate a bounty. 

However, an investigation into the incident by Platypus auditor Omniscia disclosed that the attack was made possible due to the code in the wrong order. 

According to Platypus compensation plan, affected individuals will be partly compensated by returning around 78% of the main pool funds via minting frozen stablecoins.

The DeFi protocol also disclosed that it suffered two more attacks after the first one, leading to the loss of another $667,000 thereby putting the total losses at $9.1 million. 


Tracing and Recovering Looted Funds

While the DeFi protocol Platypus reiterated that its top priority is to refund users, efforts are ongoing in a bid to recover looted funds.

It was reported on Feb. 25 that the French police have arrested two suspects related to the hack and seized around $222,000 worth of crypto assets. Platypus established that the arrests were aided by crypto sleuth ZachXBT and the Binance crypto exchange.

There is no mincing word that interoperability and collaboration between crypto institutions have led to several breakthroughs in the crypto space. 

The collaboration between Binance and Huobi exchanges also led to freezing crypto worth $1.4 million from North Korean Hackers. This sort of cooperation should be sustained in order to get rid of daredevil exploiters.